Crude oil prices rose by around 1% on Monday after Hurricane Ida hit the Gulf of Mexico, forcing upstream producers to shut and evacuate their offshore platforms. The international benchmark Brent crude gained 84 cents (1.2%) to $73.54 per barrel by 0001 GMT, after surging more than 11% last week when investors anticipated production disruptions. US WTI rose by 53 cents (0.8%) to $69.27 per barrel, having jumped by over 10% last week.
The National Hurricane Center said Ida made landfall near Port Fourchon, Louisiana, at 16:55 GMT on Sunday as a powerful Category 4 hurricane, making it one of the strongest storms since Katrina 16 years ago. According to the Bureau of Safety and Environmental Enforcement, over 95% or around 1.74 million bpd of US Gulf crude production was halted as of Sunday. Workers in 290 offshore oil and gas facilities had been evacuated, while 11 drill vessels had been moved out of the hurricane’s path by mid-Saturday, the BSSE said.
